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Two years ago it was a large tech company and now a second tech giant has entered into settlement agreements with the U.S. Department of Justice’s Immigrant and Employee Rights Section (IER) over concerns related to their Permanent Labor Certification (PERM) recruitment practices. These settlements demonstrate the need for employers to consider anti-discrimination and PERM regulations when developing PERM recruitment strategies.

In October 2021, the IER reached a settlement agreement with a large tech company, addressing alleged discriminatory practices in recruitment conducted for purposes of PERM applications. The company’s extraordinary volume of 2,600 PERM applications filed over 20 months revealed significant disparities between the number of applicants for PERM and non-PERM positions. Additionally, IER contended the company was showing a preference for foreign national employees in the PERM recruitment process. Key settlement terms included the company agreeing to bring its PERM recruiting practices more in line with its non-PERM recruiting methods and comprehensive training for recruiting staff to ensure compliance with good faith recruiting standards. The company agreed to pay $4.75 million in civil penalties and it established a $9.5 million settlement fund to compensate applicants who experienced discriminatory treatment.

Another large tech company recently reached a settlement agreement with IER to resolve a 2019 investigation into alleged discriminatory PERM recruitment and hiring practices. IER said its investigation revealed a pattern of favoring temporary visa holders over qualified U.S. applicants. As a result of the settlement, the company agreed to pay $25 million in civil penalties and back pay to individuals adversely affected by the discriminatory PERM practices. The company will be subject to three years of supervised PERM recruitment and also committed to implementing a non-discriminatory PERM recruitment policy and training for employees involved in recruiting or hiring to ensure compliance.

These IER settlements underscore the importance of anti-discrimination regulations in the context of recruitment. In particular, the substantial penalties serve as a clear reminder of aligning PERM and non-PERM recruiting activities. These investigations also serve as an important reminder of IER’s focus on employers’ recruitment and hiring practices. It is crucial for all employers to continually reassess their policies and procedures to ensure compliance.

Tags: anti-discrimination, department of justice, PERM, PERM Application, PERM Labor Certification Application, US Department of Justice
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Photo of Laura Foote Reiff ‡ Laura Foote Reiff ‡

Laura Foote Reiff has more than 32 years of experience representing businesses and organizations in the business immigration and compliance field. She is also a business immigration advocate and has long chaired prominent business immigration coalitions. Laura is Co-Founder of GT’s Business and

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Laura Foote Reiff has more than 32 years of experience representing businesses and organizations in the business immigration and compliance field. She is also a business immigration advocate and has long chaired prominent business immigration coalitions. Laura is Co-Founder of GT’s Business and Immigration and Compliance Group which she co-led since 1999. She currently chairs the Northern Virginia/Washington D.C. Immigration and Compliance Practice. Laura is also Co-Managing Shareholder of the Northern Virginia Office of GT, a position she has held since 2010. As a global leader in the business immigration community, Laura has served on the Boards of the American Immigration Lawyers Association, the American Immigration Council, the National Immigration Forum and is currently the Chair of the America is Better Board.

Laura advises corporations on a variety of compliance-related issues, particularly related to Form I-9 eligibility employment verification matters. Laura has been involved in audits and internal investigations and has successfully minimized monetary exposure as well as civil and criminal liabilities on behalf of her clients. She develops immigration compliance strategies and programs for both small and large companies. Laura performs I-9, H-1B and H-2B compliance inspections during routine internal reviews, while performing due diligence (in the context of a merger, acquisition or sale) or while defending a company against a government investigation.

Laura represents many businesses in creating, managing and using “Regional Centers” that can create indirect jobs toward the 10 new U.S. jobs whose creation can give rise to EB-5 permanent residence for investment. She coordinates this work with attorneys practicing in securities law compliance, with economists identifying “targeted employment areas” and projecting indirect job creation, and with licensed securities brokers coordinating offerings. She also represents individual investors in obtaining conditional permanent residence and in removing conditions from permanent residence.

Laura’s practice also consists of managing business immigration matters and providing immigration counsel to address the visa and work authorization needs of U.S. and global personnel including professionals, managers and executives, treaty investors/ traders, essential workers, persons of extraordinary ability, corporate trainees, and students. She is an immigration policy advocacy expert and works on immigration reform policies.

‡ Admitted in the District of Columbia and Maryland. Not admitted in Virginia. Practice limited to federal immigration practice.

Read more about Laura Foote Reiff ‡
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Photo of Rebecca B. Schechter ‡ Rebecca B. Schechter ‡

Rebecca Schechter focuses her practice on business immigration and compliance, representing multi-national corporations midsized companies, and startups, as well as individual clients. She has experience with all areas of employment-based immigration, particularly H-1B, L-1, O-1 and E-2 petitions, as well as outstanding researcher…

Rebecca Schechter focuses her practice on business immigration and compliance, representing multi-national corporations midsized companies, and startups, as well as individual clients. She has experience with all areas of employment-based immigration, particularly H-1B, L-1, O-1 and E-2 petitions, as well as outstanding researcher petitions and labor certification applications. Rebecca regularly assists GT clients with global immigration matters, including business and work visas to countries in Europe, the Middle East, Asia, and Latin America. She also works on state and federal I-9 and E-Verify audits. Rebecca has a thorough understanding of third party contractor issues and experience handling complex naturalization, deportation defense, family and employment-based adjustment applications.

‡ Admitted in Maryland and Connecticut. Not admitted in Virginia. Practice limited to federal immigration practice.
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